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Analysis: IT Strengths and Weaknesses

Analysis: Impacts on the (non-IT) Globally-competing Firm

About the Author

  1. MAJOR R&D INITIATIVES/PROGRAMS
    • In 1995 Chilean government established a 4-year development fund to encourage improved service to rural and low income regions. 1

    • As Chilean telecommunications firms announced investment plans for $3 billion over a 5 year period, CTC in 1997 spent US$600 million alone for the installation of over 300,000 new telephone lines and cellular network expansion. 2

  2. GOVERNMENT PLANS/FOCUS IN IT POLICIES: By becoming one of the 69 members of the WTO, Chile has agreed to open its markets to and allow foreign investment of international services and facilities beginning in 1998. In addition, Chile has agreed to continue to adopt and enhance pro-competitive regulatory policies and market liberalization. In July of 1997, Chile implemented the Canada-Chile Free Trade Agreement (CCFTA). Modeled after NAFTA, CCFTA allowed for Canadian manufactured IT and Telecommunications product to enter the country duty-free and a gradual elimination of tariffs on certain Canadian products by January. 3

    Within the WTO document is an agreement dedicated to Basic Telecommunication Services.4 Chile has provided commitments for implementation (1/1/98) for the following areas:
    • Foreign Investment: Chile will permit foreign ownership or control of all telecommunications services and facilities, except for local service.
    • Regulatory Principles: Chile will guarantee pro-competitive regulatory principles.
    • International Services and Facilities: Chile will guarantee market access to international telecommunications services and facilities.
    • Satellite Services and Facilities: Chile will guarantee market access for domestic and international satellite services and facilities.


  3. GLOBAL INFORMATION INFRASTRUCTURE PLANS: Local Chilean companies are interested in internationalizing their operations in order to provide global communications services, to include long distance, basic telephony, cellular, cable TV and PCS. 5 Members of the Heads of State and Government of the Americas, of which Chile is a member, have agreed per the collective Plan of Action II Summit of the Americas, to "establish strategies to support the development and continuous updating of a regional telecommunications infrastructure plan , taking into account national plans, the need for universal access to basic telecommunications services throughout the Region and the evolution of a Global Information Society."6


1. http://www.dfait-maeci.gc.ca/english/geo/lac/50204-e.htm

2. Ibid

3. Ibid

4. http://www.ustr.gov/agreements/telecom/agree,emts.html

5. U.S. Department of State: Chile Commercial Guide

6. http://www.ustr.gov/agreements/index.html